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The 'tipping point' in the context of the Cold Start Theory refers to the moment when a networked product or service has gained enough traction in a smaller, initial network (the 'atomic network') that it can begin to expand and conquer larger networks. This is typically achieved after the product or service has been thoroughly tested and refined in the smaller network.
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When a networked product launches, it faces a chicken-and-egg problem: people need to use it for it to be worth anything. So how do you start the very...
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To overcome the Cold Start Problem, businesses tend to start with a single network—what Chen calls an 'atomic network'. This is perhaps the most crucial idea in the book. Networked products tend to start small, in a single city, college campus, or in small beta tests at individual companies—like when Facebook launched at Harvard University. "Only once they nail it in a smaller network do they build up over time to eventually conquer the world," Chen writes. Moreover, appropriate atomic networks are often smaller than entrepreneurs think. Uber's early atomic networks were not cities like San Francisco; '5pm at the Caltrain Station at 5th and King Street' is more accurate.
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